Operating expense ratio (Opex/revenue)
Total operating expenses as a share of revenue.
It is the mirror image of the operating margin.
How it is computed here
Operating expenses / revenue
Measured over the latest complete fiscal year, as filed. Filed under risk. Lower is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- What counts as an operating expense against a cost of revenue is a reporting choice.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Questions
How is operating expense ratio calculated?
Operating expenses / revenue. Measured over the latest complete fiscal year, as filed.
What does operating expense ratio tell a value investor?
It is the mirror image of the operating margin.
When does operating expense ratio mislead?
What counts as an operating expense against a cost of revenue is a reporting choice. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.